S. Korean Gov’t to Disclose Forex Market Intervention History

The South Korean government is planning to disclose its forex market intervention history under pressure from the U.S. government.

At present, South Korea is the only OECD member country not disclosing the history. Not only the United States but also the IMF has called for the South Korean government for years to disclose the history in the interest of transparency. The foreign exchange authorities said that the disclosure of the information, which has been examined for a long time, has nothing to do with the recent KORUS FTA renegotiations.

The South Korean government has yet to determine how often and when to disclose the information and the scope of the information to be disclosed. The United States is currently doing so in the first month of each quarter with a delay of about one month. Japan, Britain, Canada and Australia are doing so each month with the same delay.

“Given the high volatility of the South Korean foreign exchange market, the delay should be as long as at least one year,” said Yonsei University professor Kim Jung-shik. Samsung Futures analyst Jeon Seung-ji also said, “The disclosure of the history itself is a concession on the part of the government and it needs to determine the frequency every six months like Singapore before adjusting the frequency in the future.” As members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Singapore, Malaysia and Vietnam are going to disclose their histories every six months.

“It is a matter of course that the United States will urge South Korea to disclose specific dates of intervention as well, but the South Korean government should block it to the maximum extent possible,” Seoul National University professor Kim So-young mentioned, adding, “Details related to the disclosure should be determined by none other than the South Korean government.”